Analysis of Big Data-Based Financial Technology and AI on Financial Inclusion in Indonesia (EKOMBIS REVIEW Jurnal Ilmiah Ekonomi dan Bisnis)

Summary

• The study analyzes the impact of Big Data and AI-based financial technology on expanding financial inclusion across Indonesian provinces for the 2019–2024 period.p.1
• Indonesia's national financial inclusion index increased from 67.8% in 2016 to 85.1% in 2022.p.2
• A persistent gap remains between financial access and financial literacy, which stood at 49.68% in 2022.p.2
• Indonesia set a national target to achieve a 90% financial inclusion rate by 2024.p.3
• The empirical panel data regression model shows an Adjusted R-Squared of 86.54%, indicating high explanatory power for financial inclusion drivers.p.9
• Fintech loan adoption demonstrates a strong positive contribution to financial inclusion with a regression coefficient of 3.00211.p.8

Key insights

1. Big Data and AI enhance financial inclusion by expanding credit distribution efficiency and providing non-traditional credit scoring.p.1
2. The national financial inclusion index in Indonesia rose from 67.8% in 2016 to 85.1% in 2022.p.2
3. Financial literacy levels in Indonesia lag behind inclusion at 49.68%.p.2
4. Indonesia targeted reaching a 90% financial inclusion rate by 2024.p.3
5. The tested independent variables collectively explain 86.54% of the variation in Indonesia's financial inclusion index.p.9
6. Fintech penetration acts as a key driver of financial inclusion with a positive regression coefficient of 3.00211.p.8
7. Mobile banking penetration positively impacts the financial inclusion index with a regression coefficient of 0.74523.p.8
8. Regional economic growth measured by GRDP shows a positive coefficient of 5.21701 on financial inclusion.p.8